Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Mar 01, 2024

China to introduce new overseas listing rules for mainland firms from end-March

China to introduce new overseas listing rules for mainland firms from end-March

The CSRC will implement a new regulation from March 31 for mainland companies seeking to list overseas, paving way for more mainland firms to enter Hong Kong and US markets.
The China Securities Regulatory Commission (CSRC) will implement a new regulation from March 31 for mainland companies wanting to list overseas, clarifying the rules for more firms to enter offshore markets, including Hong Kong and the US.

Under the new regulation announced by the CSRC late on Friday, mainland companies can choose which overseas markets they want to list in but they must register their intention with the CSRC in advance.

In addition, they will also need to get approval from their own industry regulator. For example, a tech company that wants to list overseas will need approval from the Cyberspace Administration of China (CAC) that such a listing would not contravene China’s strict data security laws.

The new rule is aimed at clarifying the rules for mainland companies on how they can raise funds in Hong Kong, the US and other overseas markets, a CSRC spokesman said in a statement.

The move comes after months of scrutiny amid rising political tensions between Washington and Beijing. Ride-hailing giant Didi Global had to delist from the New York Stock Exchange in 2022, where it raised US$4.4 billion in a public listing, after Beijing launched a cybersecurity probe into the company.

“The new overseas listing regulation reflects that China will not change the direction of opening its capital markets and allowing mainland firms to raise funds from international investors to share the growth story of the country,” a CSRC spokesman said in the statement.

The CSRC and Hong Kong’s Securities and Futures Commission on Friday also signed a memorandum of understanding, clarifying the arrangements and procedures for mainland companies that want to list in Hong Kong. The agreement will clarify how the two regulators work together to conduct cross-boundary enforcement, supervision of intermediaries and exchange of information.

“The MOU will facilitate the CSRC and the SFC in discharging their supervisory functions, jointly combating cross-boundary offences and misconduct, safeguarding the legitimate interests of investors and ensuring the steady and healthy development of both markets,” according to a joint statement between the CSRC and the SFC.

Prior to Friday’s announcement, Chinese companies had stopped listing in the US, while some mainland technology companies delayed their Hong Kong listing plans in the wake of the probe into Didi Global.

“The new CSRC rule will clear up uncertainties about how mainland companies with sensitive information can list in the US and Hong Kong,” said Tom Chan Pak-lam, permanent ­honourable president of the Institute of Securities Dealers in Hong Kong, an industry body. “This is a positive move as it will encourage more new listings in Hong Kong and the US.”

Those companies that have already listed in overseas markets will not be affected by the new rule – which becomes effective March 31. However, they will need to register with the CSRC if they want to raise fresh funds in overseas markets in future.

Companies that already have regulatory approval in Hong Kong or the US but which have not yet listed, will receive a six-month grace period from the CSRC allowing them to list in that timespan. If they fail to list before the deadline, they will need to follow the new rule.

Separately, the CSRC said on Friday it will implement a registration-based IPO system immediately for stock exchanges in Shanghai, Beijing and Shenzhen after gaining support for the proposal from a consultation period that ended on Thursday.

Meanwhile, the US and China resolved their audit dispute in December, removing the risk of more US delistings for mainland companies. This should also encourage more mainland firms to list in the US, Chan said.

Related Articles

Hong Kong News
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.